{"id":1397978,"date":"2022-03-24T09:14:52","date_gmt":"2022-03-24T13:14:52","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1397978"},"modified":"2022-03-24T09:14:55","modified_gmt":"2022-03-24T13:14:55","slug":"putin-attacks-petrodollar-system-demands-unfriendly-nations-purchase-gas-in-rubles","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/putin-attacks-petrodollar-system-demands-unfriendly-nations-purchase-gas-in-rubles\/","title":{"rendered":"Putin Attacks Petrodollar System, Demands &#039;Unfriendly&#039; Nations Purchase Gas in Rubles"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fputin-attacks-petrodollar-system-demands-unfriendly-nations-purchase-gas-in-rubles%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1397978&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p class=\"subheading\">Russian leader Vladimir Putin has issued a demand that \u201cunfriendly\u201d countries purchase natural gas in rubles rather than dollars or euros in an apparent attack against America\u2019s global hegemony through the petrodollar and the international sanctions levied against Russia\u2019s central bank.<\/p>\n<p>Speaking before a cabinet meeting in Moscow on Wednesday, the embattled Russian strongman said that his government will no longer accept \u201ccompromised\u201d currencies, such as the dollar or the euro, from countries that have levied sanctions in response to his invasion of Ukraine.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>\u201cI made the decision to implement within the shortest possible time the package of measures to transfer payments \u2014 we will start with that \u2014 for our natural gas supplied to the so-called \u2018unfriendly\u2019 states to Russian rubles,\u201d Putin <a href=\"https:\/\/www.themoscowtimes.com\/2022\/03\/23\/putin-orders-europe-to-pay-rubles-for-russian-gas-a77053\">said<\/a> per the <em>Moscow Times<\/em>.<\/p>\n<p>\u201cIt doesn\u2019t make sense to deliver our goods to the EU or U.S. and receive payments in dollars or euros,\u201d he added.<\/p>\n<p>The move is largely seen as a retaliatory strike in response to sanctions levied against the central bank of Russia, as well as the United States and EU taking the unprecedented move to freeze Russia\u2019s international reserves, an estimated $300 billion mostly in dollars that Moscow had previously seen as an insurance policy should it be cut off from the international financial system.<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>Should Putin follow through with the threat, it would force European nations to purchase hundreds of millions of euros worth of rubles per day in order to cover the costs of its hefty gas imports from Russia, thereby propping up the struggling currency, which fell substantially after the invasion of Ukraine and the subsequent enactment of Western sanctions.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Turn Down Thermostats to Fight the Ruskies, Europeans Told<a href=\"https:\/\/t.co\/pWAJgoYqqC\">https:\/\/t.co\/pWAJgoYqqC<\/a><\/p>\n<p>\u2014 Breitbart London (@BreitbartLondon) <a href=\"https:\/\/twitter.com\/BreitbartLondon\/status\/1499731383845019652?ref_src=twsrc%5Etfw\">March 4, 2022<\/a><\/p>\n<\/blockquote>\n<p>Russia\u2019s demand for payment in rubles comes amid growing concerns about the fate of the \u2018petrodollar\u2019, a system in which oil is only traded on the global market in American currency. Saudi Arabia, for example, has signalled that it may be willing to begin <a href=\"https:\/\/www.wsj.com\/articles\/saudi-arabia-considers-accepting-yuan-instead-of-dollars-for-chinese-oil-sales-11647351541\">accepting the Chinese RMB<\/a> in exchange for oil, a move that could potentially upend America\u2019s position as the supreme power in the world.<\/p>\n<p>The petrodollar has been a staple of the global economy since 1973 when U.S. President Richard Nixon \u2014 who took America off the gold standard \u2014 made a deal with Saudi Arabia to only trade oil in U.S. dollars, a move that was quickly adopted by the Organization of the Petroleum Exporting Countries (OPEC).<\/p>\n<p>By forcing the world to trade oil in dollars, the U.S. not only massively increased its sway over other countries but also prevented inflation by forcing other countries to hold dollar reserves and therefore limit the supply of notes in circulation.<\/p>\n<figure id=\"M-ROS-B3\" class=\"a8d adSo\"><\/figure>\n<p>Should Saudi Arabia and other major oil producers follow Russia\u2019s lead, it could result in massive dumping of dollars on the world stage, spelling potential doom for the American economy and indeed the possible end of its post-Second World War era of global domination.<\/p>\n<p>While Russia\u2019s decision to demand \u201cunfriendly\u201d nations purchase gas in rubles is not a full-scale attack on the petrodollar, it will put the U.S. and its allies, notably Germany, in a tough position.<\/p>\n<figure id=\"D-ROS-B2\" class=\"a8d\"><\/figure>\n<p>In response to Putin\u2019s announcement, German economy minister Robert Habeck <a href=\"https:\/\/www.dw.com\/en\/putin-unfriendly-states-to-pay-for-russian-gas-in-rubles\/a-61234904\">accused<\/a> Russia of a \u201cbreach of contract\u201d and said that his country will \u201cdiscuss with our European partners how we would react to that.\u201d<\/p>\n<p>It remains to be seen, however, what leg Germany will be able to stand on in a contract dispute, given its moves to block the <a href=\"https:\/\/www.breitbart.com\/europe\/2022\/02\/22\/german-chancellor-sholz-blocks-approval-for-russias-nord-stream-2-pipeline\/\">Russian-German Nord Stream 2 gas pipeline<\/a> and to <a href=\"https:\/\/www.breitbart.com\/europe\/2022\/03\/04\/sending-obsolete-missiles-to-ukraine-germany-finds-hundreds-too-old-to-fire\/\">ship weapons to Ukraine<\/a>, breaking a longstanding tradition of not sending arms to conflict zones.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Progress? Germany Agrees Gas Deal with Sharia Qatar to Reduce Dependency on Russia<a href=\"https:\/\/t.co\/RfxtIGVIhQ\">https:\/\/t.co\/RfxtIGVIhQ<\/a><\/p>\n<p>\u2014 Breitbart London (@BreitbartLondon) <a href=\"https:\/\/twitter.com\/BreitbartLondon\/status\/1505922181284261888?ref_src=twsrc%5Etfw\">March 21, 2022<\/a><\/p>\n<\/blockquote>\n<figure id=\"M-ROS-B4\" class=\"a8d adSo\"><\/figure>\n<p>Though Russia is heavily dependent on gas sales to Europe, Germany is also heavily dependent on Russian gas. Indeed, prior to the invasion of Ukraine, the European Union\u2019s economic powerhouse imported 55 per cent of its natural gas from Russia.<\/p>\n<p>Prior to the announcement from Putin on Wednesday, Germany\u2019s Chancellor Olaf Scholz told the country\u2019s parliament (Bundestag) that while his government is looking to secure other energy sources, cutting off Russian gas imports immediately would send \u201cour country and all of Europe into a recession\u201d.<\/p>\n<p>\u201cThe truth is that the sanctions that have already been decided also hit many citizens hard, and not just at the gas pump,\u201d Scholz <a href=\"https:\/\/www.politico.eu\/article\/olaf-scholz-warns-against-russia-energy-embargo\/\">said<\/a>, adding that sanctions \u201cmust not hit the European countries harder than the Russian leadership.\u201d<\/p>\n<p>Germany recently agreed to a <a href=\"https:\/\/www.breitbart.com\/europe\/2022\/03\/21\/germany-agrees-to-gas-deal-with-islamic-qatar-to-decrease-dependency-on-russia\/\">deal with Qatar<\/a> to begin importing gas from the Islamic kingdom, however, as there is currently no pipeline infrastructure to expedite this, the gas will likely be needed to be transported by the sea. C<\/p>\n<p>Germany does not currently have the infrastructure at its ports to accept large amounts of natural gas, and the German government has said that such installations won\u2019t be operable until 2026.<\/p>\n<p>The quandary that Germany finds itself in demonstrates the pitfalls of the country\u2019s attempts to<a href=\"https:\/\/www.breitbart.com\/europe\/2022\/03\/16\/green-agenda-germans-fear-consequences-of-new-governments-climate-policy-poll\/\"> transition to a green economy<\/a> while still dependent on hostile powers to keep the lights on. The situation also renders Germany\u2019s ability to conduct foreign policy somewhat limited.<\/p>\n<p>Ukraine\u2019s foreign affairs Minister Dmytro Kuleba has\u00a0<a href=\"https:\/\/twitter.com\/DmytroKuleba\/status\/1506899782786244612\">complained<\/a> that \u201cIf any EU country bows to Putin\u2019s humiliating demands to pay for oil and gas in rubles, it will be like helping Ukraine with one hand and helping Russians kill Ukrainians with the other. I urge relevant countries to make a wise and responsible choice.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Captives of Russia: European Energy Prices Soar as Putin Holds Back Gas Supplies <a href=\"https:\/\/t.co\/HPddwWFyil\">https:\/\/t.co\/HPddwWFyil<\/a><\/p>\n<p>\u2014 Breitbart London (@BreitbartLondon) <a href=\"https:\/\/twitter.com\/BreitbartLondon\/status\/1457799836259033091?ref_src=twsrc%5Etfw\">November 8, 2021<\/a><\/p>\n<\/blockquote>\n<p><em><strong>Follow Kurt Zindulka on Twitter here <a href=\"https:\/\/twitter.com\/KurtZindulka\">@KurtZindulka<\/a><\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Russian leader Vladimir Putin has issued a demand that \u201cunfriendly\u201d countries purchase natural gas in rubles rather than dollars or euros in an apparent attack against America\u2019s global hegemony through<\/p>\n","protected":false},"author":123,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1397978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1397978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/123"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1397978"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1397978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1397978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1397978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1397978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}